Merv's Daily Commentary 15 June 2010

After The Close, 15 Jun 2010

Merv’s Daily Uranium Index
Market Data

Open: 149.32
High: 152.34
Low: 147.65
Close: 151.13
Volume: 3508

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

Little by little it’s getting there, all the Daily Index needs to get through that down trend line is a little kick in the a--. Where, oh where is Obama when you really need him?

It’s been three weeks now since we had that short term positive divergence. Ever since, the Index has been slowly moving in a positive direction BUT has not really confirmed a turn around trend. Today, we are there.

The Merv's Daily Uranium Index closed higher by 1.95 points or 1.31%. There were 25 winners, 13 losers and 12 just sitting there. Cameco gained 2.6%, Extract lost 6.4%, Fronteer gained 1.6%, Paladin gained 1.7% and Uranium One was a lazy stock just sitting there. The best winner of the day was First Uranium with a gain of 12.0% while the loser of the day was NWT Uranium with a loss of 9.1%. Market Vectors Nuclear Energy ETF gained 2.1%.

We still do not have any intermediate term indicators giving us a turn around signal so the intermediate term rating remains unchanged for now, at a BEARISH rating.

On the short term the Daily Index closed above its moving average line and the line has now turned upwards. The momentum indicator is still in its negative zone but is moving upwards and is above its positive sloping trigger line. More importantly, the momentum indicator has moved above its highs of two to three weeks ago suggesting slightly better strength behind the Index move than one might get from looking at the Index itself. The biggest hold off is the daily volume activity. We really, really need much higher daily volume activity to support an upside move. Today, the short term rating has moved into the fully BULLISH level.

As for the immediate direction of least resistance, that looks more and more like the up side but yet there is that down trend resistance line (and the resistance from the top three weeks back) to overcome. I’ll stick with the lateral direction until that break-out occurs.